CALCULATE THE INITIAL COSTS, CALCULATE THE OPERATING CASH FLOW, CALCULATE THE TERMINAL NON OPERATING CASH FLOW, CALCULATE THE NPV$.$

Initial Equipment  $$65,000$

 

Project Life $3$ Years Sales $$55,000$

$\mathrm{<br>}$

Variable Costs $$25,000$

Fixed Costs $$10,000$

Tax rate $26\%$

$\mathrm{<br>}$

Cost of Capital $10\%$

$\mathrm{<br>}$

Ending Book Value $$10,000$

Sales Price at Year $\mathrm{3 \; \$\; 5000}$

Net Working Capital $$10,000$

 

Answer rating: 100% (QA)

To calculate the Net Present Value NPV of the project we need to determine the following 1 Initial C... View the full answer